Paying Tax On A Rented House

[ladybird49]

Thinking of renting my house out , what would i pay in tax on renting it out for £400 a month please

[Twenty20]

Need to know what all the expenses would be before calculating the tax.

[Kathyan]

It depends on what personal allowance you have, whether the house is in joint names and if you are employed. They allow you 10% repairs.

[Kathyan]

That should read 10% for repairs.

[VHG]

Your income tax to pay is based on EVERYTHING you earn in the year.

So the £400 a month would need to be added to any salary you earn, or pension you get, or any other money you get from other properties you rent out (or any other income).

So you need to add up your TOTAL yearly income and then work out the income tax from that.

I am sure you can find the tax figures on the HMRC web site.

If you have no salary or pension or other income then the £400 a month only comes to £4,800 a year so you would pay no tax on it (simplistic view).

If you had a job paying you £40,000 a year then you would probably pay 40% tax on the £400 (simplistic view).

So we cannot give you a definitive answer.

[Peter Pedant]

OK that is £4800 on top of your annual earnings what ever they may be.
You are allowed 10% wear and tear and up to 30% on repairs but these last one have to be receipted. Expenses are well written up - legal fees, hse insurance, repairs but not improvements, maintenance, mortgage interest

so let us say that is £1500

so your unearned income is 3 300, and if you pay tax at 20% then your tax bill is £6 60 and if it is 40% £1320.

simples

commonest fault is to charge the whole of your mortgage against tax, and not just the interest element.